Arkansas nonprofit transitions to self-funding and redirects $380K to mission
Case study by Corry Hull, REBC®, CSFS®
$380K
Net savings redirected to mission
14%
Average annual renewal increase eliminated
$60K
Conservative specific deductible
115%
Aggregate protection level
The Challenge
A 275-life Arkansas nonprofit had been fully-insured for 14 years. Their board had concerns about the financial risk of self-funding, and their incumbent broker had never proposed it. Annual renewal increases averaged 14% over five years. The CFO estimated they were leaving significant money on the table.
The Approach
We modeled three years of claims data and presented a self-funding feasibility analysis to the board. Stop-loss was structured conservatively at $60,000 specific with aggregate protection at 115%. A local TPA with strong Arkansas network access was selected. Employee communication was handled through a series of town halls. The plan launched on January 1.
Note: This case study is a composite of multiple employer engagements. Identifying details have been changed. Savings figures are net of all plan costs. Sources: Internal claims analysis; stop-loss carrier documentation; TPA fee schedules; board presentation materials.
Methodology & Verification▾
Baseline
Fully-insured renewal premium for plan year starting January 2024.
Intervention
Self-funded plan with conservative stop-loss structure and new TPA. Launched January 2024.
Measurement period
12-month plan year.
Savings methodology
Net savings = renewal premium minus (actual claims + stop-loss premium + TPA fees + admin). Stop-loss recoveries included.
What was excluded
Transition costs, broker compensation, and internal HR time excluded.
Employer size
275 benefit-eligible employees; ~230 enrolled in medical.
Funding type
Self-funded with specific stop-loss at $60,000 and aggregate at 115% of expected.
Source / verification
Savings verified against employer financial statements and TPA claims reports.